Oil falls on huge buildup in gasoline supplies

Benchmark oil for January delivery dropped $1.07 to close at $97.44 a barrel on the New York Mercantile Exchange. Oil had jumped $1.17 to $98.51 on Tuesday, its highest level in six weeks.

The Associated Press

12/11/2013

NEW YORK — The price of oil fell 1 percent Wednesday after the government reported a large buildup in supplies of gasoline and distillate fuels such as diesel.

Benchmark oil for January delivery dropped $1.07 to close at $97.44 a barrel on the New York Mercantile Exchange. Oil had jumped $1.17 to $98.51 on Tuesday, its highest level in six weeks.

Gasoline supplies rose by 6.7 million barrels, the Energy Department said, while distillate supplies increased by 4.5 million barrels in the week ended Dec. 6. Both increases were more than three times what analysts were expecting, raising the possibility that refiners would slow production and purchases of oil in the coming weeks.

The fuel increases overshadowed a huge decline in oil supplies of 10.6 million barrels.

Oil has fallen from $110 in September on high supplies, muted demand and a lessening of Middle East tensions. It sank to nearly $92 late last month but has since crept higher as the U.S. and Chinese economies show signs of sustained recovery.

Brent crude, a benchmark for international crudes, rose 32 cents to $109.70 a barrel on the ICE Futures exchange in London.